V2X: Bidding Faster And Bigger, But Growth Does Not Inspire

May 08, 2025 3:52 AM ETV2X, Inc. (VVX) StockVVX1 Comment
(9min)

Summary

  • V2X reported mixed Q1 earnings, beating EPS estimates but missing revenue expectations, leading to a 4% stock price drop despite a buy rating.
  • Ownership by AIP, low EBITDA margins, and uninspiring sales growth contribute to the stock's challenges, despite no significant trade or defense budget headwinds.
  • V2X's Q1 results showed low growth, worse cash outflow, and lower margins, but the company is bidding on larger contracts, potentially driving future margin expansion.
  • Despite low growth and no dividends, V2X is undervalued with a 33% upside to $65.26, driven by fundamental underappreciation and significant ownership by AIP.
  • Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More »
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V2X (NYSE:VVX) reported its first quarter earnings on the 5th of May, beating analyst estimates on EPS, but missing estimates on revenues. The stock price dropped in response to the earnings release and is now down 4% since

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This article was written by

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Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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